Bonds/Interest Rates

The July RBA minutes confirm a dovish tone anyway, and a lot has happened in a couple of weeks.

According to Macquarie central banks are likely to lift interest rates modestly to control inflation but such a move would likely further pressure equity markets.

As the US government steps in to save its two sponsored mortgage lenders, one may wonder just exactly what Fannie Mae and Freddie Mac are and why they are so important.

While the US Federal Reserve is becoming increasingly concerned about the inflation outlook the Commonwealth Bank suggests the US Housing market needs to stabilise before a rate hike is considered.

US thrift IndyMac collapsed on Friday as the market focused on Freddie and Fannie. It was the second biggest bank collapse in US history.

Labour market data for June came out stronger than expected and add to the conflicting economic signals at present, which is clouding the rate pciture for the RBA.

Retail sales seem the only paradox in Australia as now housing finance joins the ever growing list of weakening data.

NAB’S latest monthly survey shows a sharp decline in Australian business conditions, with domestic demand growing slower than most in the market had forecast.

As the “will they won’t they” debate on Australian interest rates twists and turns, this week sees the latest employment data.

After hiking 25 points, the ECB indicated no further hikes, allowing the US dollar to rally and the Dow to bounce back 73.